Keep digging into a very obscure but extremely critical point: how much manual operation does an on-chain system really need to survive long-term.

At this stage of DeFi development, this question is before everyone.

**Short-term projects rely on operations, long-term systems rely on self-consistency**

Looking at most protocols on the market, their operational logic is full of shadows of manual decision-making: parameters need frequent adjustments, strategies change with market conditions, insufficient liquidity leads to incentivization, all to maintain superficial stability through operational actions.

This approach works very quickly when the market is hot. But over a long cycle? Almost 100% will fail.

The reason is simple—humans cannot perform high-frequency management with zero errors over the long term. This is a human limitation, not anyone's fault.

Systems that can truly last a long time share a common trait: they can produce reasonable results with minimal manual intervention, thanks to their mechanisms.

Falcon's obvious impression is this—it’s not about designing "how sophisticated the management is," but about designing "how little frequent management is needed." The difference is huge.

**The core of system design: eliminate nodes that require "manual judgment"**

If you break down Falcon’s operational path, you'll find it deliberately compresses several key decision points:

How assets are collateralized—rule-based.
How risks are priced—rule-based.
How rewards are distributed—rule-based.
How liquidations are triggered—rule-based.

Many protocols choose to leave "flexibility" in these areas to gain short-term efficiency. But this project’s approach is the opposite—using rules to gain stability.

The short-term cost is obvious: flexibility decreases, making it harder to respond quickly to extreme market conditions. But what about long-term benefits? The system can run itself without needing daily parameter adjustments.

This contrast is clear: a system that needs frequent blood transfusions vs. a self-sustaining system. Which one lasts longer? No need to say.